Within the financial service industry, recent times have witnessed expansive growth in customer-initiated account and cash access and payment systems. Perhaps most significantly, the prevalence of networks of automated teller machines (ATMs) has provided individuals with convenient, twenty-four hour a day access for such transactions as cash withdrawal and bill payment. Since the ATM networks of many financial institutions are interconnected, customers typically can perform transactions using the ATMs of other financial institutions in addition to those of their own local financial institution.
The widespread adoption of ATM networks has profoundly benefited consumers as they travel within areas serviced by such networks. Instead of having to plan ahead to have sufficient cash for extended trips, many consumers now carry less cash, confident in the ability to access cash through ATMs located at their destination. Thus, for example, a business person from New York who finds that his or her stay in Chicago has been extended unexpectedly can easily obtain additional cash through the ATM network even if there is no local affiliate of the business person's home financial institution.
Despite these benefits, there are many situations in which existing ATM networks are insufficient to meet the demands of the modern traveler. For example, international travel is increasingly common today. However, primarily because of the use of different currencies and disparities in controlling regulations promulgated by different governmental entities, international travelers typically are unable to expect that they will be able to access cash in an international destination. As a result, international travelers often are forced to carry a significant amount of cash or travelers checks in order to ensure that they will have significant funds for their trip. The traveler must either have exchange their home currency for the destination currency in advance, or during their trip make exchanges.
Further, notwithstanding the conveniences afforded by ATM networks, a significant number of consumers still do not have accounts which are accessible with an ATM card. For such consumers, even domestic trips outside the areas serviced by their home financial institution require that they carry enough cash for the duration of their trip.
As most people are all too familiar, such travelers often may find themselves in great distress when their cash is lost or stolen. In such circumstances, a traveler must obtain cash, for example by relying on a friend or family member to send money.
A typical way for this to happen is for the sender to "wire" the funds to the traveler. This process requires the sender to contact a financial institution and request that funds be transferred to a specific destination where the recipient is ready to receive the funds. For example, the recipient must locate a local office which is open and wait for the funds to arrive. Needless to say, many emergencies arise outside of normal business hours, and this manner of receiving funds often proves extremely inconvenient for both the sender and the recipient
The situation may be much worse if no one is available to assist the traveler in distress. In such a case, the traveler often must locate a financial institution which is capable of receiving funds transferred from the traveler's home financial institution. The traveler often must provide identification information which is entered and then transmitted so that it may be authenticated and approved by the customer's home financial institution. This process creates several opportunities for errors to occur which may result in a delay in the customer's request. Should errors occur, manual intervention and investigation then becomes necessary. Again, such transfers are often much more complicated and burdensome where funds must be transferred across international borders.
U.S. Pat. No. 5,659,165 and U.S. Pat. No. 5,825,003 address some of these problems by extending the capabilities of an ATM network. U.S. Pat. No. 5,659,165 describes a system and method allows funds to be transferred from accounts between related financial institutions (for example, a first bank in the U.S. and an affiliated bank in Germany) or between accounts of two customers within the same financial institution. The method and system of the U.S. Pat. No. 5,825,003 further allows funds to be transferred from a first account to an external account serviced by another, unrelated financial institution (for example, from a customers account with a first bank in the U.S. to another customer's account with an unaffiliated bank in Germany). Both systems permit one to transfer funds across international borders in different currencies. Thus, through a global network operated by a common financial institution, a customer spending time in France can transfers funds from an account in New York to a second account in France. The customer in France can also transfer funds to other accounts, even those with other financial institutions in other countries. For example, the customer may transfer funds in German currency to another's account with a Bank B in Germany. Such transactions can be accomplished substantially in real time (excluding time for settlement).
Notwithstanding the advantages provided with the systems described in U.S. Pat. Nos. 5,659,165 and 5,825,003, a great number of travelers do not possess accounts with a financial institution that has a large, international network of ATMs. As a result, such travelers must resort to carrying a large amount of cash, thereby facing the risks described above.
It is noted that others have attempted to address some of the situations noted above. As a general matter, the proposed solutions are generally limited to the transfer of funds within the borders of a common governmental entity, and therefore do not address the complications that arise with the necessary exchange of currency and compliance with import/export regulations and other regulations on financial transactions. Further, many of the proposed solutions require a recipient to locate an office which is open and which is capable of receiving transfers, or, alternatively, have a card or equivalent means which permits the recipient to access an ATM or equivalent terminal.
It is known that EDS has advertised a funds transfer service referred to as "Z Cash." According to EDS, this service is available through ATM networks which support the service. A sender must first locate an ATM which supports the service and access the service, typically by inserting an ATM card or other card which initiates the ATM's services. The sender is prompted to input the amount to be sent and a numerical code. Funds are immediately debited from the senders account or from a credit card account. Once the request is made, a receipt is printed that includes a system-generated security code. The sender then contacts the recipient (for example, by telephone) to indicate that the funds are available and to provide the information necessary for the recipient to receive the funds (i.e., the necessary security code). The recipient must then locate a participating ATM which supports the service and access the finds that were previously withdrawn from the sender's account.
Additionally, U.S. Pat. No. 5,350,906 to Brody et al. and U.S. Pat. No. 5,326,960 to Tannenbaum also describes a funds transfer system which relies, at least in part, on an ATM network. A recipient accesses funds that have been previously withdrawn from the sender's account using a temporary ATM card and an identification number.